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Sales & Lodging Tax Example

The following tables demonstrate how the basic sales and lodging tax calculations are applied and how the tax payments are remitted. In this case the example is for Destin, Florida (Okaloosa County).

For this example we assume a transaction where the home is rented seven nights for $250 per night, plus a $100 cleaning fee. Sales tax calculations are relatively simple; the total rent received is multiplied by the tax rate. The "Guest Charges" table demonstrates how the tax is calculated and charged to the guest.

Now that the tax has been collected from your guest, the other tables summarize the calculations for each tax return and payment, one return for Florida and one return for Okaloosa County. In the following example we will assume the previous rental was the only booking for the month. Of special note, Florida and Florida counties allow the taxpayer to keep 2.5% of the tax due as compensation for collecting and remitting the tax, as long as the return is filed on time. This is known as the collection allowance.

Guest Charges in Destin, FL
Rent$1,750.00
Cleaning$100.00
Total taxable$1,850.00
Tax (11%)$203.50
Total charge$2,053.50
Florida Tax Return
Taxable revenue$1,850.00
Tax (6%)$111.00
Collection allowance (2.5%)($2.78)
Net tax due$108.22
Okaloosa County Tax Return
Taxable revenue$1,850.00
Tax (5%)$92.50
Collection allowance (2.5%)($2.31)
Net tax due$90.19